Denis Doulgeropoulos
Your Financial Professional & Insurance Agent
Signs of a Scam…and How to Resist It
Although scammers often target older people, younger people who encounter scams are more likely to lose money to fraud, perhaps because they have less financial experience. When older people do fall for a scam, however, they tend to have higher losses.1
Stay Alert to Financial Scams and Cybercrime
Regardless of your age or financial experience, criminals actively create schemes to steal your money. Therefore, you must remain especially cautious when using the internet and social media. In fact, studies show that people who encounter scams through websites or social platforms are more likely to engage with scammers. As a result, they face a higher risk of losing money compared to those contacted through phone calls, mail, or email.
Fortunately, understanding common scam tactics can help you recognize threats early. Furthermore, awareness allows you to protect your personal and financial information more effectively.
Common Scam Warning Signs You Should Know
Scammers Pretend to Represent Trusted Organizations
Scammers often claim they represent trusted institutions such as the IRS, Social Security Administration, banks, or well-known companies. Consequently, they attempt to gain your trust and access sensitive information. However, legitimate agencies rarely request sensitive details through unexpected calls or messages.
Therefore, always verify suspicious communications using official contact information. Additionally, never share personal or financial details unless you confirm the source independently.
Scammers Create Fake Problems or Offer Fake Prizes
Scammers frequently invent urgent problems or promise attractive rewards. For example, they may claim you owe money, your account has issues, or you won a prize. However, these claims usually aim to create panic or excitement.
If you did not enter a contest, you cannot win a prize. Likewise, legitimate organizations do not require upfront payments to release funds. Therefore, contact your bank, service provider, or family members directly to verify any unusual claims.
Scammers Pressure You to Act Quickly
Scammers rely on urgency to prevent you from thinking clearly. For instance, they may warn about penalties, legal trouble, or lost opportunities. Consequently, they push you to act immediately without verification.
Legitimate businesses always provide time for proper decision-making. Therefore, pause, verify the information, and avoid making rushed financial decisions.
Scammers Request Payment Through Unusual Methods
Scammers often request payment through wire transfers, gift cards, or fake checks. These methods make recovery difficult once the money leaves your account. Furthermore, scammers may send fake checks and ask you to return a portion of the funds.
Always remember that legitimate organizations do not request payment through gift cards or wire transfers. Therefore, avoid sending money to unknown individuals or unverified sources.
Protect Yourself with Smart Financial Safety Practices
Staying informed is your strongest defense against scams. Therefore, verify every unexpected request, protect your personal information, and remain cautious online. Furthermore, educating yourself about scam tactics reduces your risk of financial loss.
For additional guidance and scam alerts, visit
consumer.ftc.gov/features/scam-alerts.